Organic Aquaculture -Opportunities for Emerging Markets

The environmental challenge for exporting to Europe

OECD Workshop on Opportunities and Challenges of Fisheries Globalisation Markus Stern SIPPO Swiss Import Promotion Programme

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Trends in Europe

Consumer market trends

Ecology

Social Aspects

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Neglecting market trends means out of the market

poor quality

Service antibiotics Center chemicals

negative press price wars

environmental factors

poor social responsibility

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Regulations and market requirements

Import duties, levies (anti-dumping), taxes, VAT, import licensing, quota, phytosanitary certificates, bans Standardisation - technical specifications - performance of goods and services CE Marking Quality management ISO 9000 series, ISO 22000 (food industry) Health and safety (no risk for the safety and health of persons) HACCP, Good Agricultural Practice (GAP), Good Manufacturing Practice (GMP) EurepGap, IFS, BRC, organic certificate Environment, waste management Green dot (some countries), ISO 14001, Ecolabeling, FSC, MSC Social accountability SA 8000, Fair trade (IFAT, IFOAM, Max Havelaar)

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Market Perspectives for Organic Food

International Market 2006: > $ 30 billion USA: > $ 15 billion Europe: > $ 15 billion Asia: > $ 900 million Asia: Oceania: > $ 400 million Oceania: Others: ? Others: International Market 2007: est. $ 40 billion est. Growth per year: 10 15% year: Growth potential of the global organic markets Global change in consumer behaviour

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Consumer Behaviour
Reasons, why some consumers prefer organic products: 75% health-consciousness 60% environmental reasons 25% better taste How many consumers buy organic products? 20% of the consumers buy regularly organic products 50% of the consumers buy organic products once in a while 30% of the consumers never buy organic products

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The Organic Approach

origin/source of material

Pilot farm / hatchery

fishmeal/-oil plant material pigments etc.

feed factory
environment harvesting documentation book-keeping storage

chain of custody

System of inspection

farm

processing storage export

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Organic aquaculture projects

Vietnam Black Tiger shrimp White shrimp Trout Scallops Black Tiger shrimp Black Tiger shrimp & FW Prawns 1198 farmers (1 farm) farm) 4-5 Farms 1 Farm 1000 farmers certified

Ecuador & Peru Bangladesh

Certified Certified in process in process 300-500 300certified 2007 just started

India

1500 3000 farmers

Indonesia Not yet Mozambique defined

planned

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Interfaces areas of co-operation

Activities of partners partner organisations

Activities of SIPPO

Production

Processing

Export marketing

Match-making

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Organic black tiger shrimp in Vietnam

Protection and re-forestation of mangroves 1198 Aquafarms in Ca Mau

No use of pesticides, herbicides and antibiotics Training/ Vietnam

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SIPPO RIA2 / MOFI Shrimp Hatchery Improvement Project

Domestication of Penaeus monodon in indoor system and production of specific-pathogen-free shrimps

Nguyen Van Hao, Nguyen Duy Hoa, Nguyen Quoc Hung, Vu Thanh, Thanh, Greg Coman, Olivier Muller, Uwe Waller, Patrick Sorgeloos, Roeland Wouters, Coman, Sorgeloos, Wouters,

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Organic Aquaculture in Myanmar, Thailand and Malaysia

Duration Location Estimated total costs Financing from the Common Fund Counterpart contributions in cash and in kind Co-financing (FAO/SIPPO) CoProject Executing Agency (PEA) Supervising Body : : : US$ 133,875 INFOFISH Sub-Committee on Fish Trade of the FAO SubCommittee of Fisheries, as the designated International Commodity Body (ICB) for Fishery Products : : : : : 36 months Union of Myanmar, Thailand and Malaysia US$ 1,401,875 US$ US$ 835,217 432,783

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Organic aquacultural production

Advantages Market opener / competitive product / price premium Steady buyer, co-operation coNatural production sites Positive image Market trends in Europe Opportunities opportunities for smaller producers in rural areas favours natural production methods can often be applied in developing countries on current production, but needs certification

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Coop 2005 Purchases of Organic Shrimps from State Owned Enterprise 184 and Camimex
Summary of Purchases 2002-2006

$4'000'000 $3'500'000 $3'000'000 $2'500'000 $2'000'000 $1'500'000 $1'000'000 $500'000 $0

$3'800'000

$2'793'829 $2'055'992

$271'500
2002

$460'570

2003

2004

2005

2006

Eurogroup Far East Ltd Gerhard Zurlutter 06.01.2006

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If you take the market seriously

Market trends Ecological production Social responsibility Marketing Customer CCCC Customer needs & wants Market Success

Marketing Mix PPPP

Sustainability Marketing
Osec Business Network Switzerland 2006

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Europe Facts & Figures

Member states: 27
Population 496 Mio

Population: 496 Mio. Area total: 4325675 Official languages: 23 GDP 2006 - Total: $13.3 trillion - Per capita: $28,100

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